Together, these factors meant the company swung to a pre-tax loss of $2.6bn for 2012, against a $13.2bn profit the year before.

Mr Walsh, presiding over his first set of results, promised to deliver shareholders better value in future, stressing his credentials as an experienced mining operator rather than a deal-maker.

“There are no acquisitions that I’m working on,” he said. “One can never say never, I have learnt that in business, but there’s nothing on my radar screen. My focus will be on delivery of value to shareholders.”

He added that spending this year would drop to $13bn, with the option to push back some projects. His stance reinforced the wider shift taking place across the sector, as miners turn their attention from expensive growth projects to running their existing assets with greater efficiency.

The $14bn of writedowns mostly related to Rio’s ill-fated purchase of aluminium company Alcan at the top of the market. However, it was unexpected writedowns at its coal assets in Mozambique, bought less than two years ago, which forced Mr Albanese out.

Mr Walsh put past mistakes at the company “down to poor judgment rather than flawed systems” but said he would be working on getting everyone – from geologists to HR staff – to think as “businessmen and businesswomen” rather than just as sector specialists.

He also announced a board reshuffle, with head of copper Andrew Harding succeeding him as Rio’s iron ore chief. Mr Harding will in turn be replaced by Jean-Sebastien Jacques, from within the copper division.

On the economic outlook, Mr Walsh predicted growth in China of more than 8pc, which would represent the “soft” landing that markets are hoping for.

Despite the balance sheet pain, the company raised its total dividend by 15pc to $1.67, to be paid on March 18.

“Returning [value] to shareholders is very important - that to me is the mark of success, if I can deliver greater value to shareholders,” Mr Walsh said.

Rob Clifford, an analyst at Deutsche Bank, said this was “a very positive demonstration of a focus on shareholder returns”.